Mr Matsipa said Kleoss Fund I was a general fund, but would not invest in mining or real estate. However, it will invest in mining services companies and ancillary support services firms to the real estate sector.

Kleoss Capital is targeting firms in which it can take up a minimum of a 25% stake to a controlling shareholding.

He said many mid-sized companies had a challenge of running two processes: one where they needed to raise capital to grow, while on the other hand, they needed a black economic empowerment deal to sustain their business growth in SA.

As a black-controlled private equity firm, Mr Matsipa said, Kleoss Capital had the benefit of injecting both empowerment credentials and the capital needed to grow all at once.

"Our private equity firm brings in active operational expertise in the businesses we invest in. We have people who have been bankers and a former private equity practitioner," Mr Matsipa said.

He added Kleoss Capital was unapologetic about driving transformation in the companies it invested in and was not going to be a passive shareholder waiting for dividends. It would also help investee companies comply with empowerment regulations.